Work vehicle sales up almost 40%

Work vehicle sales grew by almost 40 per cent in the year to November as businesses took advantage of the federal government's rebate scheme.

21 January 2010By Kim Christian

Work vehicle sales grew by almost 40 per cent in the year to November as businesses took advantage of the federal government's rebate scheme.

Non passenger vehicle sales, which include work vehicles such as utilities and vans, grew by 38.6 per cent to 23,404 in November from the same month a year earlier, the Australian Bureau of Statistics said on Thursday.

The demand for vehicles was driven by tax incentives - the bonus tax deduction of 50 per cent of the vehicle's value for small business and 30 per cent for larger businesses.

The ABS said overall new motor vehicle sales rose by 3.3 per cent, seasonally adjusted, to 89,741 units in December, from an upwardly revised 86,888 units in November.

Commsec chief economist Savanth Sebastian said the result was a nice way to cap off the government's stimulus spending on new car purchases for small businesses.

"It was the ninth increase in the past 10 months and it now stands at 20-month highs," Mr Sebastian said.

He highlighted data showing more than 22,400 trucks, buses and utility vehicles were sold in December alone.

"It's the highest reading in records going back over 16 years and in annual terms other vehicle sales are up a staggering 40 per cent on a year ago," Mr Sebastian said.

"So that's the strongest annual growth rate on record as well."

Four Wheel Drive sales (SUVs) are also at record highs in the month of December.

Mr Sebastian said he predicted family vehicle sales would pick up this year.